Company: Grantham Mayo van Otterloo
Credo: Eventually the cost of assets and the size of profit reach long-term average values.
Intuition of the investor. In the 80es quarter letters of Grantham to shareholders warned about "bubbles" in Japanese stock market, in the 90es — about "bubble" of "dotcoms", and in the 2000es— about crisis in the market of real estate.
Principles. If you are not a genius of the level of Warren Buffett or Peter Lynch, it is almost impossible to guess specific winners at a long distance. So Grantham is focused on wider sectors of the market: in the 70es he was accompanied by success with stocks of the companies with small market capitalization, in the 80es — in the international market. Lesson? Stop to choose separate actions, look for benefit in wider scale.
Invest like Grantham. Look closely at the earth. Grantham predicts global crisis in the market of food in the next years and considers that acquisition of a farm will be an excellent step. If you don't want to become the land owner, pay attention to the stocks of the food companies bargaining at the exchange, such as Monsanto or Tyson Foods.
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